Ncell revenue declines in FY 2022, generates Rs 9.61 billion in the fourth quarter of 2022, data contribution grows

Ncell Axiata has posted a decline in revenue for the fiscal year 2022 including in the fourth quarter (Q4 FY 2022). As per the report, the telco generated a decreased revenue of Rs 9.61 billion in the fourth quarter of the current fiscal year while its yearly revenue stood at Rs 39.81 billion for FY 2022. Meanwhile, the contribution of data to its revenue stream reached 33 percent, the company’s latest financial data reveal.

According to the report, Ncell drew Rs 9 billion, 61 crores, 31 lakhs, and 50 thousand in Q4 of 2022. It is a decline of 58 crores, 36 lakhs, and 40 thousand from the same period of FY 2021. Last year in Q4, the telco had a revenue of Rs 10 billion, 19 crores, 67 lakhs, and 90 thousand.

Ncell revenue Q4 2022	Ncell revenue Q4 FY 2021	Difference
9,61,31,50,000	10,19,67,90,000	58,36,40,000↓

Ncell revenue declines in 2022

On the other hand, the telco’s annual revenue for the year stood at Rs 39 billion, 81 crores, 4 lakhs, and 10 thousand. The telco collected Rs 41 billion, 44 crores, 98 lakhs, and 60 thousand in revenue in FY 2021. This means Ncell’s year-to-year total revenue decreased by Rs 1 billion, 63 crores, 94 lakhs, and 50 thousand in this year.

Ncell annual revenue FY 2022	Ncell annual revenue FY 2021	Difference
39,81,04,10,000	41,449,860,000	1,63,94,50,000↓

The decline in revenue is translated to the operator’s EBITDA (earnings before interest, taxes, depreciation, and amortization) figure. The report shows that Ncell’s total EBITDA in Q4 2022 stood at Rs 5 billion, 20 crores, 13 lakhs, and 80 thousand against Rs 5 billion, 72 crores, 5 lakhs, and 20 thousand same periods last year. Likewise, Rs 53 crores, 92 lakhs, 97 thousand, and 715 went into direct expenses for Q4, FY 2022.

The company’s total operating costs in Q4 2022 marginally increased to 45.89% from 43.9% in the same period of FY 2021.

Ncell ARPU from both Prepaid and Postpaid services in Q4 FY 2022

Ncell’s ARPU (Average Revenue Per User) also reflected a decline. As per the report, Ncell generated an average of Rs 244 and Rs 178 a month on postpaid and prepaid services respectively from previous quarters. Compared with the last year’s data, ARPU on postpaid and prepaid was Rs 282 and Rs 197 respectively. That is the telco’s ARPU decreased by Rs 38 and Rs 19 respectively from Q4 FY 2021.

Ncell ARPU Postpaid Q4 2022 and 2021	Ncell ARPU Prepaid Q4 FY 2022 and 2021	Difference
Rs 244 and Rs 282	Rs 178 and Rs 197	Rs 38↓ and Rs 19↓

Also read: Ncell reduces PAYG voice call rate | At Flat Rs 1.62 per minute

Data contribution growing

Data usage meanwhile has grown for the operator. The report shows that Ncell users consume an average of 4079 MB of data per month which is steadily soaring in recent years. In the same quarter of 2021, the average data consumption was 3,357 MB. This year, the data usage grew continuously from 3,185 MB in the first, 3,251 MB in the second, and 3,701 MB in the third quarters surpassing the 4,000 MB mark in the final quarter.

Ncell data usage trend FY 2022	1st quarter	2nd quarter	3rd quarter	4th quarter
Ncell data consumption per user	3,185 MB	3,251 MB	3,701 MB	4,079 MB

Ncell’s data traffic meanwhile, is nearing 112 million GB in the last quarter.

It should be noted that Ncell’s data services contributed a sound 33 percent to the total revenue in Q4, the highest so far for the company.

Smartphone penetration and 3G/4G towers

Ncell’s smartphone penetration also increased to almost 71 percent during the same period. There are 3,983 Ncell 4G base stations across the country while 3,233 towers are helping with the 3G connection.

Check out: Latest Ncell Data Packs With Volume, Price, and Code

Ncell’s marginally dim finances are attributable to a few issues. The telco’s parent company Axiata said that the decrease in the International Long Distance (ILD) and the effect of the lower interconnection rate were to blame for the decline in its overall revenue decline in FY 2022. Check out: NTC Lowers Interconnection Calls Charges, Find New Tariffs

Ncell boasts a 35.89 percent market share in Nepal’s telecom market. The telco has over sixty-nine lakhs of 4G users across Nepal and is waiting for approval to start its 5G trial.